Further regulation is further accelerating further complexity. Emmanuel Carjatof TMX Atrium suggests there could be an approach, which - with a regulatory push - could quickly solve the challenge.
For many years now, market participants have been calling
for a European consolidated tape of record, if only to help
prove best execution and to improve the price formation
Ever since the introduction of Mifid in 2007, the industry
has recognised the impact this will have on market efficiency
not only in the world of equities trading, but also in the
ability to price other instruments, including derivatives,
futures and options.
But, as we have seen from recent efforts, implementing a
consolidated tape is challenging. Enabling and ensuring price
formation on the underlying stock of any trade type is
essential, but, without any form of benchmark this is hard to
In my opinion, the greatest barriers to delivering the tape
has not been the technical challenges, rather it has been the
lack of engagement by parties deeply vested in their own
interests along with a fundamental misalignment of the roles of
market participants with those of the end consumer.
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